The Department’s five-star year 2022 has begun at pace with the launch of our India free trade agreement negotiations, the signing of the sovereign investment partnership with Oman, discussions with Brazil towards an economic trade partnership, the launch of our new and improved trade show programme, and the virtual African investment summit taking place today. As I mentioned earlier, yesterday I met with US Secretary of Commerce Gina Raimondo to start negotiations with the US on the section 232 tariffs. These have cost the steel industry over £60 million per year; I am firmly pressing for their express removal and am confident we can now make fast progress towards this to ensure that trade works in the interests of all UK businesses and workers.
Further to my earlier question with regard to US steel tariffs and section 232, what are the chances of our getting those tariffs lifted, given that the Prime Minister is playing fast and loose with security policy on Northern Ireland, particularly through doing his best to trash the Northern Ireland protocol?
We will be pushing for a deal that is right for the UK steel industry and I am confident that the long-standing alliance between the UK and the US, built on a rich history of shared values and free and fair trade, will ensure that the negotiating outcomes are what we need for UK industry. The UK and the US work together across the piece in so many difficult areas at the moment and I hope that those in all parts of the House will continue to give support as we take on some of those challenging security issues.
T2. With over £2.6 billion-worth of exports, I am sure my right hon. Friend agrees that the Black Country is, and will remain, the beating industrial heart of the west midlands. As she goes out with ministerial colleagues to bat for the Black Country on the industrial stage, what is she doing to ensure that supply chain issues in particular are at the forefront of our trade negotiations, and that businesses such as KJV Furniture in Oldbury are able to import and export smoothly; and will she ensure that once again other areas of the world can see the fantastic wares that are made in the Black Country?
My hon. Friend raises an important point. A key challenge facing the UK and other major exporters is shipping container costs, and there is ongoing engagement across Government, including the Department for Business, Energy and Industrial Strategy, the Competition and Markets Authority and the Department for Transport, to ensure that we understand the background causes of price rises and their impacts, such as by contacting the shipping lines and engaging with international partners where necessary to address the key issue of supply lines that my hon. Friend raised.
Given the Government’s underwhelming performance on trade to date, even the small gains from joining the comprehensive and progressive agreement for trans-Pacific partnership would be welcome, but one issue that the previous Secretary of State always ducked was China’s interest. Given President Xi’s reaffirmation on Monday of China’s desire to join the CPTPP, can the Secretary of State clarify whether Britain would have the right to veto China’s accession?
The hon. Gentleman raises an important point. These issues are very complex, but what I will say is that we are first in the queue to join CPTTP, and after that all things are up for review.
Cherilyn Mackrory (Truro and Falmouth) (Con)
T5. The last couple of years have been extremely difficult for the shell fishermen in Cornwall, include those on the River Fal, which has one of the most historic and sustainable fisheries in the world. That said, fishing communities across the UK will benefit from the £75 million boost to the sector; can my right hon. Friend the Secretary of State assure me that the Department will work with the Cornish fishermen benefiting from this investment and help them further capitalise on it by ensuring that they are able to play their part in the Government’s “Race to a Trillion” strategy?
My hon. Friend raises an important point, particularly for her constituency, and I can give the assurance that the Government will continue to work closely with Seafish and the Shellfish Association of Great Britain to encourage their members to look at new markets and drive awareness of UK seafood in international markets. We have a network of trade advisers in the UK and overseas who can support the sector to trade successfully, and I am happy to put any of her businesses in contact with them.
In December, the Government snuck through a change to the UK’s arms export rules, and charities such as Oxfam have warned that these changes will lessen transparency over arms exports and could see UK arms being used against civilians such as those in Yemen. What steps is the Minister taking to ensure that UK arms exports are not used to commit breaches of international humanitarian law?
The Government have not “snuck through” such changes. We are very open and transparent about the policies that sit behind our very good arms export controls, which are also scrutinised by this House. The Department is due to meet a number of stakeholders; I can check whether Oxfam is part of that. We meet regularly to discuss these issues. We have one of the best arms export regimes in the world; it is flexible and changes as situations change. The hon. Lady will know that we recently made some new changes because of what is happening in parts of the world. She should be confident in what we are doing on that.
Antony Higginbotham (Burnley) (Con)
T6. The Government will be aware of the global shortage of semiconductor chips. The impact of that is being felt far more by SMEs than the largest companies, which can make large purchases years in advance. What steps are the Government taking to support those SMEs to import semiconductors so that they can keep operating? If I write to the Department, will they look at a specific constituency case of mine?
My hon. Friend raises what is a vital point in a global economy. The Government are carrying out a review of the UK’s international and domestic approach to semiconductor supply chains. The Department for Digital, Culture, Media and Sport is leading that review, supported by the Department for International Trade. We also support growth in the UK semiconductor sector by driving investment—for example, by promoting the world-leading compound semiconductor cluster in south Wales, as part of our high potential opportunities programme. If my hon. Friend would care to write to the Department, we will of course take up the constituency issue.
T3. The European Union secured a comprehensive exemption from the section 232 steel tariffs way back on 30 October 2021. Here we are, almost three months later, and talks with the UK Government are only just starting. To ensure that the talks proceed smoothly and rapidly, we need to understand the cause of the delay. Does the Secretary of State agree that the probable cause is the Government’s shambolic handling of the Northern Ireland protocol? If she does not think that is the cause, perhaps she will enlighten the House about what she thinks the cause of the delay has been.
As I have outlined today, I am pleased that yesterday we were able to formally launch our negotiations with the US to find a solution to the section 232 tariffs, which have been unreasonably imposed on the UK for a number of years. The EU quantum of steel was of importance to the US, which wanted to start those negotiations because the impacts on both sides were great. We are very pleased that the UK is now able to progress on what will be a very important impact, and release some of the pressures on our excellent steel industry.
T9. As some of my colleagues have already pointed out, it would be wrong to say that there is not some nervousness in rural Scotland about what the deal with Australia will mean. Some of that is caused by the anti-trade scaremongering on the SNP Benches, but will the Minister expand on the opportunities for Scotland as a result of our deal with Australia?
The UK-Australia free trade agreement could boost Scotland’s economy by about £120 million. The deal will help boost Scottish exports by removing tariffs of up to 5% on Scotch whisky and through additional commitments to release goods from customs quickly. Scotland’s services firms will also benefit from access to billions of pounds’ worth of Australian Government contracts. Staff will be able to travel for work with easier access to temporary entry visas.
T4. Can the Secretary of State confirm whether she is still undertaking discussions with UK trade partners on inserting clauses on investor-state dispute settlement systems into future trade deals? There is evidence that they are opaque and could open the UK to law suits from multinational corporations. Will she confirm whether she is still pursuing them?